The board of Tube Investments India (TII), a part of the Rs 38,000-crore Murugappa Group, on Thursday approved of the company’s entry into complete automobile manufacturing.
The company has earmarked an outlay of up to Rs 200 crore for the segment. It, however, did not disclose other details.
Meanwhile, TII elected M A M Arunachalam (also known as Arun Murugappan) as the chairman of its board of directors with immediate effect. Arunachalam is currently a non-executive, non-independent director of the company.
TII specialises in engineering, bicycles, metal products, and chains.
The company’s profit grew 37 per cent year-on-year to Rs 107.07 crore in the quarter ended December. It’s revenue increased to Rs 1,309 crore in the third quarter from Rs 976 crore in the year-ago period.
“TII has delivered strong results driven by an overall revival in the economy and easing of lockdown restrictions. The company expects that this momentum will continue, as the economy, which has started showing signs of revival, improves further,” said Arunachalam.
TII has entered into a Securities Subscription Agreement (SSA) with CG Power and Industrial Solutions (CG Power) last year, resulting in the acquisition of CG Power and its subsidiaries (together, the CGPower Group). The company has invested around over Rs 1,000 crore.